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Poverty-hunger divergence in India

Article  in  Economic and political weekly · January 2014

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COMMENTARY

of both figures is the sharp divergence

Poverty-Hunger Divergence between poverty and under-nutrition
that they highlight, especially for the
in India period of the economic reforms. Even
though these facts have not attracted
much attention in the mainstream media,
Deepankar Basu, Debarshi Das the divergence between hunger and
poverty is not a new finding. It has been

T
The usual explanations for the he argument that economic re- studied in the past by many Indian econ-
divergence between calorie intake forms in India – a shorthand for omists like Mehta (2004), Ray (2005), Pat-
the adoption of neo-liberal eco- naik (2007), Subramanian (2013), and
and consumption expenditure
nomic policies since the early 1990s – others. What is important to reiterate is
in India ignore the enormous have been a success often relies on the the simple and clear import of the diver-
squeeze on food budgets arising downward trend of expenditure-based gence: it tells us in no uncertain terms
from dispossession (leading to measures of poverty over the past two that even as expenditure-based measures
decades. In urban areas the head count of poverty have declined in India, calorie-
loss of access to common property
ratio (HCR) poverty fell from 32% in based measures of under-nutrition and
resources), rising migration 1993-94 to 21% in 2009-10. The fall in hunger have gone up.
(involving a loss of access to the poverty in rural India has been even
more spectacular, where the HCR declined Choice or Structural Coercion?
non-market food items) and the
from 50% to 34% over the same period. The divergence between expenditure-
forced turn to the private sector
According to the data released by the based measures of poverty and calorie-
for social sector services that Planning Commission in mid-2012 the based measures of nutrition raise serious
are more expensive than public overall HCR has declined by another questions about the Planning Commis-
sector provision. It is the resulting 8 percentage points to 22% in just two sion’s methodology for estimating the
years. This major dent on the state of incidence of poverty in India. We will not
squeeze on food budgets that has
poverty has been celebrated in policy pursue this issue here. Instead, we would
led to calorie intake declining circles and the mainstream media in like to offer a few comments on the
even as per capita consumption unabashedly positive terms. puzzling phenomenon that underlies the
expenditure has risen. This argument, hinging on poverty divergence between poverty and hunger.
reduction, looks decidedly uncomfort- Certainly, the decline in expenditure-
able when confronted with another set based measures of poverty reflects growth
of facts – the data on the prevalence in real per capita expenditures. Thus,
of hunger (or under-nutrition) in India the available evidence suggests that
(under-nutrition is defined here narrowly even as per capita real expenditure in
as inadequate calorie intake). Applying the country has increased over time, per
commonly used benchmark calorie norms capita calorie intake has gone down.
(2,400 and 2,100 kcal per person per This surprising divergence in the trends
day in rural and urban areas, respec- of real per capita expenditure and per
tively), we see an upending of the rosy capita calorie intake, which underlies
picture of economic reforms portrayed the divergence between poverty and
by establishment-oriented thinkers. The hunger, has been termed the “calorie
proportion of undernourished persons consumption puzzle” (CCP).
in urban India, i e, those consuming less Two questions associated with the CCP,
than 2,100 kcal per day, was already demand our attention. First, are people
high at 58% in 1993-94; it climbed to eating less food even when they can
70% in 2009-10. In rural areas, the in- afford more? Second, are people eating
crease was sharper, and from an already less nutritious food, even when they can
higher level – those consuming less than afford more nutritious food?
2,400 kcal per day rose from 71% to an Some researchers like Angus Deaton
Deepankar Basu ([email protected]) is
astounding 90% during the same period. and Jean Drèze (2009) have tentatively
with the Department of Economics,
University of Massachusetts, Amherst; To highlight these startling facts, answered the first question by suggest-
Debarshi Das ([email protected]) is with Figures 1 and 2 (p 23) provide time series ing that the falling calorie intake reflects
the Department of Humanities and Social plots of poverty and under-nutrition in declining calorie needs of the population.
Sciences, Indian Institute of Technology, rural and urban India, respectively, from Calorie needs have declined, they think,
Guwahati.
1983 to 2009-10. The most striking aspect because of occupational diversification of
22 JANUARY 11, 2014 vol xlIX no 2 EPW Economic & Political Weekly
 COMMENTARY
Figure 1: Poverty and Under-nutrition in Rural India since 1983 would indeed be a substantial impacts on the expenditure
100
90 marked exception to a patterns of households. For instance, an
90
Prevalence of Under-nutrition 79.8 pattern observed in most increasingly footloose labour force means
80 countries of the world. that a large section of the working poor
% of population

71.1
66.1 65.9
70 At the very least, the have to bear higher costs of transporta-
60 claim of voluntary choice tion, maintain communication with the
50.1
50 45.6
41.8
deserves critical scrutiny. sites of work (much of which is seasonal
39.1
40 33.8 One of us has co-au- in character), and are deprived of tradi-
30
Expenditure-based Poverty thored a study that at- tional non-market sources of food when
1983 1987-88 1993-94 2004-05 2009-10
tempts to do precisely away from home.
Sources: Deaton and Drèze (2009); GOI (2009), and website of the Planning
Commission of India: http://planningcommission.nic.in/news/press_pov1903.pdf this (Basu and Basole Third, and possibly most important,
2012). The study offers shrinking social expenditure by the
Figure 2: Poverty and Under-nutrition in Urban India since 1983
75
an alternative explana- government is rendering the urban and
Prevalence of Under-nutrition
70
tion of the CCP, high- rural poor dependent on market prices
65
60.5 63.9 lighting the element of of non-food essential items, which are
structural coercion that typically high. Contrary to what is com-
% of population

55 57.1 58.1

45 40.8
38.2
is at play. The findings of monly believed by pro-reform economists
35 31.8 our study suggest that and commentators, economic reforms
25.7 rather than being a mat- initiated in the mid-1980s (and accelerated
25 20.9
Expenditure-based Poverty ter of choice, the poor since the early 1990s) did not increase
15
1983 1987-88 1993-94 2004-05 2009-10
have been increasingly efficiency, and reduce the relative price of
Sources: Deaton and Drèze (2009); GOI (2009), and website of the Planning forced to spend more on essential services like healthcare, educa-
Commission of India: http://planningcommission.nic.in/news/press_pov1903.pdf
non-food essential items tion, transportation. In fact, the price of
the workforce (the main element being a such as education, healthcare, transpor- food relative to miscellaneous components
movement away from agriculture), mecha- tation, fuel and lighting. The share of – education, healthcare, conveyance,
nisation of agricultural work, improve- monthly expenditure devoted to these and consumer services – of the consumer
ment in the epidemiological environment, items has increased at such a pace that price index for agricultural labourers
declining fertility and adoption of house- it has absorbed all the increase in real (CPIAL) has slightly declined between
hold-level labour-saving technologies. income over the past three decades. 1983 and 2010. Being forced to procure
To address the second question, some This has led to a “food budget squeeze”, these non-food essential services from the
economists like Abhijit Banerjee and which has meant relatively stagnant private sector has contributed to what we
Esther Duflo (2011) have suggested that real food expenditure over the last two have termed the food budget squeeze.
people are choosing more expensive and decades. Several factors have led to or Fourth, probably driven by emulation
possibly tastier food over bland, nutri- compounded the effects of the food of the expenditure patterns of the rich
tious food. “When very poor people get a budget squeeze. (facilitated by the advertising campaigns
chance to spend a little more on food, of large corporations on television, radio
they don’t put everything into getting Influencing Factors and newspapers) and easing of supply
more calories. Instead, they buy better- First, primitive accumulation of capital constraints of diverse food items like
tasting, more expensive calories” (p 23). has led to increasing displacement and vegetables, fruits, milk, etc, the poor have
In an op-ed in the Bengali daily, Ananda dispossession of farmers, destruction of also displayed some diversification of
Bazaar Patrika, Banerjee (2012) made rural livelihoods and loss of access to their food expenditure. Thus, some sub-
the same point once again. common property resources like forests, stitution of expensive (meat, eggs, milk,
We remain sceptical of both arguments. ponds, grazing lands and rivers. Along
Typically in countries across the world, with the growth of landlessness, shrink- EPW Index
as per capita income rises, the economy ing access to common property resourc-
An author-title index for EPW has been
witnesses occupational diversification es have led to sharp declines in access to
prepared for the years from 1968 to 2012.
(with a large shift of the workforce from non-market sources of food. The PDFs of the Index have been uploaded,
agriculture to industry and services), the Second, the structure of occupation year-wise, on the EPW website. Visitors can
epidemiological environment improves has been undergoing rapid change. download the Index for all the years from the
(so that the incidence of gastrointestinal Rural working people are migrating in site. (The Index for a few years is yet to be
diseases decline), fertility rates fall, and large number to urban centres or other prepared and will be uploaded when ready.)
more durables are used within households. rural areas in search of work. Most EPW would like to acknowledge the help of
But, at the same time, people in such of such migration is temporary and the staff of the library of the Indira Gandhi
Institute for Development Research, Mumbai,
economies tend to consume more calories, seasonal in character, and involves trav-
in preparing the index under a project
not less. If in India they are voluntarily elling relatively large distances. This supported by the RD Tata Trust.
choosing to remain undernourished, it large circulation of labour will have
Economic & Political Weekly EPW JANUARY 11, 2014 vol xlIX no 2 23
COMMENTARY

fish, etc) for cheaper calories (cereals) of argument we assume that the poor are and not the limited one as visualised in
have also taken place. choosing tasty, less nutritious food over the National Food Security Act.
Hence, a combination of stagnant real the calorific ones (as Abhijit Banerjee
expenditures on food (arising from the and Esther Duflo assert). If that is indeed References
food budget squeeze), loss of access to the case, what should be the optimal Banerjee, A (2012): “Du Takay Chaal Dilei Apushti
Kombe Na, Garib Manusher Jonyo Aar Ektu
non-market sources of food and diversi- policy response? Experience from across Jatno Niye Bhabte Hobe”, Ananda Bazaar
fication of food expenditure seems to the world suggests that people often Patrika, 4 January.
have led – with the effect of the food make wrong choices due to lack of infor- Banerjee, A and E Duflo (2011): Poor Economics: A
Radical Rethinking of the Way to Fight Global
budget squeeze being the strongest – to mation or an inability to engage in long- Poverty (Public Affairs: New York).
a fall in calorie intake. It is important to run planning. A little nudge towards Basu, D and A Basole (2012): “The Calorie Con-
sumption Puzzle in India: An Empirical Investi-
note that even though some diversifica- the correct direction can be effective in gation”, Working Paper 285, Political Economy
tion of food budgets has occurred (as such cases. Research Institute, University of Massachusetts,
Amherst, viewed on 17 December 2013, http://
Banerjee and Duflo assert), this factor When the public distribution system www.peri.umass.edu/fileadmin/pdf/working_
has much lower power in explaining the (PDS) is absent or out of reach, people papers/working_papers_251-300/WP285.pdf
CCP than the food budget squeeze. In fact, have to rely for nutritious food on the Deaton, A and J Drèze (2009): “Food and Nutrition
in India: Facts and Interpretations”, Economic
while diversification is never statistically market, where prices for such food items & Political Weekly, 44(7).
significant, the food budget squeeze re- are typically high. Thus, people end up GOI (2009): Nutritional Intake in India. NSS 66th
Round July 2009 – June 2010, National Sample
mains significant in all model specifica- opting for tastier, but less nutritious Survey Office, Ministry of Statistics and Pro-
tions, in the regression results reported food, which may be similarly priced. The gramme Implementation, Government of India.
Mehta, J (2004): “Poverty in India”, Alternative
in Basu and Basole (2012). In essence, result is calorie deprivation. In such a Economic Survey 2003-04, viewed on 17 De-
this alternative line of explanation of the scenario, a way out is to make nutritious cember 2013, http://www.saunalahti.fi/otam-
mile/povindia.htm
CCP suggests that growth in real expen- food available through the PDS at a price
Patnaik, U (2007): “Neoliberalism and Rural Poverty
ditures (and underlying income) has not that is much lower than the less calorif- in India”, Economic & Political Weekly, 42(30).
been large enough to support both in- ic, tasty food, so that the price difference Ray, R (2005): “Changes in Food Consumption and
the Implication for Food Security and Under-
creased expenditures on non-food es- between the two becomes an incentive nourishment: India in the 1990s”, Development
sentials and sustain adequate nutrition. to stick to nutritious food. But, to ensure and Change, 38(2): 321-43.
Subramanian, S (2013): The Poverty Line, Oxford
We conclude with a final point about that this mechanism is effective, we need India Short Introductions (Oxford University
food diversification. Suppose for the sake to move towards a robust, universal PDS, Press: New Delhi).

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